Online Class Notes (Nicholas)(S)

Give me another annual company report.

Keep reviewing speaking exercises

Vocabulary

profitability / the profit making ability of a company

transitioned / going from one thing to another thing

prefer / to like something more than something else

espresso / a little tiny cup of very strong coffee / pronounced UH-SPRESS-OH

latte / LA-TAY / coffee and steamed milk

Frapuccino / this is Starbucks sweet coffee drink with caramel or chocolate and it usually has whipped cream on top

Machiotto / this is a “mocha” or choclate coffee drink / MOCK-KEY-YA-TOE

cappuccino / a sweet coffee drink

Pronunciation

because / BE-CUZ not BE-CARS

China / CHINE-UH / NOT CHINE-ER

It’s about the annual report for the company It was the company’s annual report – it is about the development plan of Starbucks in the Asian market. The company started to explain its market strategy for Asia in asian companies becarz they developed a plan in the europe European countries — but the outcome wasn’t good was not a good case. Now the US market is still the biggest market for the company and the company has started to enter into the european market – they entered decades ago but the coffee culture is different – so the european countries cannot won’t accept the US style.

The article doesn’t mention it. But I think the difference is maybe the european people like to go into the store and take the coffee away or sometimes they like to chat with the coffee but not to sit down –they prefer to just stand. The coffee store is much smaller in european countries but for starbucks they typically have a big and clean stores for the customers to take a sit seat and chat for a long time. And maybe it also has something to do with the coffee beans – the taste of the coffee beans are also different – the european people like the prefer more traditional, local ways.

If you “like something more than something else” use the word “prefer”. e.g. Which coffee brand do you prefer?

Pay special attention to how you say country names Europe (noun) vs. European (adj)

So after that, the company decided to enter into the asian markets such as korea, japan and among these countries – china is the biggest market.Currently they are more than 3000 stores in China and there are 2 different types – one is the a self operated store and the other one is a licensed store. The different difference is the ownership – the self operated stores are fully owned and managed by the company itself but the licensed stores are owned by their partners – the company just teaches the partners how to manage the store and supply the raw materials. When the company begin began its business in China they used licensed stores to acquire more market share because in this way they can expand more efficiently and cheaper more cost effectively. And currently the market share of Starbucks accounts for around 50% so in 2018 Starbucks transferred/transitioned most of its stores from licensed stores to self operated stores. But the most interesting point is that the article said that the self operating stores theyre did not make any money last year, but the license stores contributes more profit to the company. So the article thought the strategy of starbucks going forward needs to improve and that they need to find out the problem of its profit making concerning their profitability. The self operated stores doesnt don’t make money due to increasing rent, salary, and raw material costs like the coffee beans, paper cups.